Annual report 2014 and outlook for 2015

Attached please find the full report as PDF file.

Dampskibsselskabet NORDEN A/S

______________________________________________________________________________

Announcement no. 2

4 March 2015

Annual report 2014 and outlook for 2015

Today, the Board of Directors approved the annual report for 2014. The full report is attached as PDF file and contains the following highlights:

• Underlying operations (EBITDA): USD -31 million.
• EBITDA: USD -261 million (2013: USD 24 million) in line with the most recently announced expectations and impacted by provision for onerous contracts of USD 230 million, which will be reversed in coming years.
• Results for the year: USD -416 million (USD -48 million) of which value adjustment USD -61 million on hedging instruments.
• Strategy adjusted to more challenging markets than expected:
  • Dry Cargo fleet reduced by 21%
  • Investment programme on hold
  • 5 vessels sold – proceeds of USD 112 million
  • Coverage in Dry Cargo increased to 55% for 2015
  • Working capital improved by USD 34 million
  • Reorganised Dry Cargo Department
  • Savings programme launched, target: USD 20 million annually
  • USD 221 million in new credit facilities secured
  • Achieved hire savings of USD 10.5 million
• Dry Cargo: Market badly hit by Chinese slowdown. Earnings 2% above 1-year T/C rates, 35% above spot rates.
• Tankers: Strong market at the end of the year continued into 2015. Earnings 6% above 1-year T/C rates.
• Guidance at EBIT level due to larger fleet of owned vessels and resulting depreciation.
• Outlook for 2015: EBIT of USD -40 million to USD 40 million (USD -335 million).
• The Board of Directors proposes that no dividend be paid.

Interim CEO Klaus Nyborg in comment: ”Contrary to expectations, the dry cargo market in 2014 went from bad to worse. NORDEN launched a number of initiatives and cleared up in old contracts, which affected results for the year significantly. The Tanker Department generated the best operating profit in 6 years. In spite of a continued very difficult dry cargo market, the initiatives, along with a good start in Tankers, will ensure a significant improvement in NORDEN’s results for 2015.”

A telephone conference will be held today at 3:30 p.m. (CET) where interim CEO Klaus Nyborg, CFO Michael Tønnes Jørgensen and Executive Vice President Martin Badsted will comment on the report. By 3:25 p.m. (CET) at the latest, Danish participants should dial in on +45 3272 8018 while participants from abroad should dial in on +44 (0) 145 255 5131 or +1 866 682 8490. The telephone conference can be followed live at www.ds-norden.com where the accompanying presentation is also available.

Further information:

Michael Tønnes Jørgensen, CFO, tel.: +45 3315 0451

Martin Badsted, Executive Vice President, tel.: +45 3315 0451

_______________________________________________________________________________

Dampskibsselskabet NORDEN A/S

52, Strandvejen

DK-2900 HELLERUP

CVR no. 67758919

www.ds-norden.com